Cryptocurrency Ban in Iran: What It Means and How People Still Use Crypto

When Iran officially banned cryptocurrency trading in 2023, the government claimed it was to protect the national currency and prevent capital flight. But cryptocurrency ban Iran, a government policy aimed at controlling financial flows and reducing reliance on foreign currencies. Also known as crypto restrictions in Iran, it didn’t stop people from buying, selling, or mining digital assets—it just pushed them underground. The ban targeted exchanges and financial institutions, but not individuals. That’s the key difference. While banks can’t process crypto transactions, ordinary Iranians still use peer-to-peer networks, VPNs, and cash deals to trade Bitcoin, Ethereum, and stablecoins like USDT.

This isn’t just about avoiding sanctions. Iran’s economy has been hit hard by inflation, currency devaluation, and international isolation. For many, crypto isn’t a speculative investment—it’s a survival tool. People use crypto to pay for medical supplies, send money to family abroad, or buy essentials when the rial loses value overnight. Bitcoin, a decentralized digital currency that operates without central banks or government oversight. Also known as BTC, it’s become the most trusted store of value in Iran’s informal economy. Even though mining was once legal and heavily subsidized by cheap electricity, the government cracked down on large-scale operations too. Still, small-scale miners keep running rigs in homes and garages, often trading their mined coins directly for cash or goods.

What’s surprising is how much of this activity happens openly. Local Telegram groups, WhatsApp networks, and even physical meetups in Tehran and Isfahan have become crypto marketplaces. Sellers accept cash in rials, then send crypto to buyers’ wallets. Some even use QR codes on street corners. crypto sanctions, measures imposed by foreign governments to block financial access, often targeting state-linked actors but affecting everyday users too. Also known as Iran crypto sanctions, they make it harder to use international exchanges like Binance or Coinbase, but not impossible. Users rely on P2P platforms like LocalBitcoins or Paxful, or trade directly through decentralized exchanges like Uniswap, using privacy tools to mask their IP addresses. The government monitors transactions, but enforcement is patchy—especially outside major cities.

What you’ll find in the posts below aren’t just news updates. They’re real stories from people living under these restrictions. You’ll read about how Iranian traders navigate liquidity crunches, why stablecoins are more popular than volatile altcoins, and how North Korean hackers exploit these same networks to launder money. There’s also coverage of exchanges like BtcTurk—used by Turks, but relevant because of similar regulatory pressures—and how DeFi tools are being repurposed for survival, not speculation. This isn’t about getting rich quick. It’s about staying financially alive in a country where the rules change overnight—and the only thing more reliable than the rial is a Bitcoin wallet you control yourself.